Will the Government delay

My initial reaction was that of course the Government should delay the float until it receives the Tribunal’s report, due in September. This might be a delay of a few weeks only, and what does a few weeks matter.

It seems the timing is more sensitive than one may initially think. The rules around issuing shares in a company require the most up to date set of financial accounts. If the flat is held too long after the annual accounts have been finalised, then the company has to prepare a special more recent set of accounts. This is no minor job and can take a month or two.

Preparing the accounts can’t really be done over the summer break, as too many suppliers and the like close down, so what this means is that if Mighty River Power is not listed by perhaps October, then the delay would have to be until March or April next year. So a delay of a few weeks may be a delay of six months or so. This is undesirable for the Government because they want the five partial sales done well before the 2014 election.

I conclude:

However there is a view by some in Government that the Maori Council is acting in bad faith. The Government has been negotiating with Iwi leaders on issues around water rights for some time, and they are committed to resolving those issues. They do not believe the number of shares they hold in an SOE is relevant to their ability to resolve those issues. This is why there has been little support from Iwi for the claim by the Maori Council. There is also some anger at the fact that the Maori Council waited until the last possible moment to go to the Waitangi Tribunal, considering the policy was announced 18 months ago.

What this leads to is the alternate view that the Maori Council are going to eventually go to court regardless of what the Waitangi Tribunal says. Hence, if that is your belief, then the sensible thing is to get them into court as quickly as possible. Therefore saying you will not wait for the Waitangi Tribunal report could be a way of achieving that. It is like demanding your competitor in poker show their hand.

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Comments (84)

CJPhoto

Solution is simple. Only float 25% at this stage. That leaves plenty of room for any incentive shares and IWI claims. Once listed the subsequent sell down is easier and hopefully they will get a better price with no need for incentives. The only issue with this is the subsequent sell down may overlap with the other SOE IPO’s.

Steve Wrathall

smttc

Why the fuck should the Government cave in to brownmail and dish out shares in MRP to Iwi and others just because the Maori Council claims ownership of water? The Government should simply continue to negotiate with Maori over the use rights they are seeking. That has nothing to do with MPR’s use rights.

“This Act provides the framework for a new era in the relationship between the Crown and Waikato-Tainui and for restoring and protecting the health and wellbeing of the Waikato River for future generations,” Mr Finlayson said.

“The search for justice by Waikato-Tainui has been a long one. Settlement of the Waikato River claim with its positive and clear focus on the future of this major natural resource is a major shift that is cause for considerable optimism not only for the Crown and Waikato-Tainui but for the region’s community as a whole.”

The Act provides for a $210 million clean-up fund for the river over the next 30 years.

Taupo National Member’s PR sheet says $220 million

Other important features of the new Act include joint management agreements between Waikato-Tainui and the local authorities, participation in river-related resource consent decision-making, recognition of a Waikato-Tainui environmental plan, provision for regulations relating to fisheries and other matters managed under conservation legislation (including cultural use of wildlife materials and marine mammal materials) and an integrated river management plan.

Does the settlement affect other iwi?
Other iwi along the Waikato River share similar goals for the Waikato River and its major tributary, the Waipa River, and excellent progress is being made with their own arrangements with the Crown.
– http://www.beehive.govt.nz/release/waikato-river-settlement-act-passed
________________________________________________________

Why is Settlement not mentioned all in connection with the Mighty River Power deal?
And one assumes the $220 million is taxpayer money – what are Maori putting towards this co-govenance?

Also, DPF, you are the only commentator I have seen question why Maori concerns were not presented to the Waitangi Tribunal the moment National was elected last November 26.

Any possible shares to quell Maori concerns should take into consideration the $220 million above.

Government are pushing for a quicker response from the Waitangi Tribunal.

Full quote from Bill English (also explains timing constraints):

Government seeks information from Tribunal
02 August 2012

The Government has written to the Waitangi Tribunal seeking further information on the Tribunal’s findings, recommendations and supporting reasoning with respect to its inquiry into national fresh water and geothermal resources.

Ministers have also clarified timing constraints under which the Government is operating for the proposed sale of a minority shareholding in Mighty River Power in 2012, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

“The Government wants to consider the Tribunal’s recommendations and the reasons behind them as part of its decision on the Mighty River Power share offer this year,” they say.

“As we have said, we want to act in good faith and carefully consider the Tribunal’s recommendations.

“However, we appreciate the Tribunal’s interim direction on 30 July did not make substantive findings on any of the issues it identified. So we have today asked the Tribunal to provide its recommendations and reasoning by 24 August.

“To proceed with a Mighty River share offer in 2012, ministers would need to make decisions by the first week of September.

“We would do this on the basis of all the information available to us at that time, including the Waitangi Tribunal’s memorandum of 30 July.

“However, ministers would welcome the opportunity to consider the Tribunal’s detailed findings, its recommendations and its reasoning, which we do not have at this stage.”

The Government has also clarified the timing constraints it faces in making decisions about proceeding with the Mighty River Power share offer in 2012.
“The Tribunal expressed a view that there would be minimal or no delay to the share offer if it reported on stage one of its inquiry by the end of September,” the ministers say.

“However, there are a limited number of windows each year in which a share offer can take place.

“Delaying a decision beyond the first week of September and losing the 2012 window for the offer would have significant consequences, not only for the Mighty River Power offer, but also in delaying the rest of the share offer programme over the next two years.

“We have said consistently that we would welcome timely recommendations from the Tribunal. With that in mind, we have asked the Tribunal whether it is able to provide its recommendations and supporting reasoning by 24 August, so ministers are able to consider them alongside all other relevant information.”

Portia

The NBR has been surmising whether John Key’s decision to sign NZ up to the UN Declaration on the Rights of Indigenous Peoples could come back to bite him.

Article 25 reads:

Indigenous peoples have the right to maintain and strengthen their distinctive spiritual relationship with their traditionally owned or otherwise occupied and used lands, territories, waters and coastal seas and other resources and to uphold their responsibilities to future generations in this regard.

The article’s behind a firewall, but for those with online access, here’s a link:

ross69

ross69

In May 2009, John Key said Maori had “specific rights and interests” in regards to water. So clearly this issue has been around for quite some time. One wonders, given its policy of state asset sales, the government didn’t act with some urgency to get the issue resolved. Maybe it thought it could ignore the issue and it would go away.

Manolo

Cunningham

ross69 (635) why didn’t they go when Contact was floated? Or Prior to the election when they knew it was coming up? Don’t try and bullshit this one Ross69. Anyone with half a brain can see the timing of this is designed to fuck the government as much as possible.

fish_boy

Cunningham

ross69 the government is not ignoring the issue. The Iwi leaders forum has been working through it. The Maori Council has come in and make dicks of themselves by forging ahead like this. Alot of maori from what I can gather are pretty miffed with the Council for bulldozing the issue like this.

Hamnida

Looks like it’s all over for asset sales. It was always going to be a failed policy when 92% of the electorate hates it. Time for Peter Dunne to step up to the mark and destroy this failing government.

Grendel

ha, fish idiot tries to claim that disagreeing with the maori council does not make one a redneck (whatever he defines that as), and then his examples of what makes one a ‘redneck’ are disagreeing with the maori council.

Alan Johnstone

Here’s the short version, I guess you could argue the claim they have lodged might just fall under economic advancement, but maybe not.

———————————————————————————————————————

The general functions of the New Zealand Maori Council, in respect of all Maoris, shall be—

(a) to consider and discuss such matters as appear relevant to the social and economic advancement of the Maori race:

(b) to consider and, as far as possible, give effect to any measures that will conserve and promote harmonious and friendly relations between members of the Maori race and other members of the community:

Nookin

“I have three words for Bill English & his Kiwiblog redneck chorus:

High court injunction.”

A fearsome riposte, Fish_Boy. I am sure Bill is quaking in his shoes. Given that there seems to be time up your sleeve, can you provide some authority to the effect that the Courts have jurisdiction to issue an injunction against the Crown?. It’s generally regarded as a bit of a no-no.

Maybe you meant that it might be open to review, judicially, a minister’s decision and you overlooked the jurisdictional problems associated with injuncting the Crown. Doesn’t sound quite so daunting, though — does it?

Adolf Fiinkensein

Steve (North Shore)

Manolo @ 3.18
“It´s time for the government to tell the Maori Council to take a hike and to fuck off in no uncertain terms.
Will it happen?”
What may happen is National may lose votes at the next Election, but then again they may gain a truckload from voters who have had enough of Maori blackmailing bullshit.

Cunningham

ross69 (636) no he was also interested in keeping the welfare systems (e.g. WFF, Int free loans etc) in place which allow a large proportion of low income earners to pay no tax at all!! Remember those people Ross69??? You know the ones supported by the high income earners you have so much contempt for.

Hamfisted: “Time for Peter Dunne to step up to the mark and destroy this failing government.”

You could try asking him if he would go against his commitments and agreements, bring down the government, create political chaos and make a mockery of MMP because you say so, but I think he will take you as seriously as a TV poll (wasn’t that a txt poll?)

Cunningham

Grendel

ah the old chestnut of ‘tax cuts for the wealthy’ Ross and his comrades seem to think that somehow income = assets.

i will make it really simple for you Ross,

Income is how much money you earn in a given period.

Wealth is the level of assets you own (less the level of liabilities you have), set against a subjective amount (typically for the left wealthy is someone who owns more than you).

So the tax cuts for all NZers had no basis on their level of wealth or not. Now before you say it, yes higher income can make it easier to end up with more wealth, but in my experience working with people and their money for the past decade thats not a hard and fast rule, plenty of people can build wealth regardless of their income. and the lower the amount of tax they pay, the more money they have to save and invest to build that wealth.

but hey, feel free to hate on people having access to their own money instead of the state. but at least today you have learned something and understand the difference between income and wealth.

Grendel

oh relevance is now important to you? you were the one that decided to bring up your utterly incorrect trope of ‘tax cuts for the wealthy’.

as to water ‘rights’, this is just another attempt to try and gain a modern day payout for something that might have exsited back in 1840. like radio spectrums and somehow the access to water for fishing for eels and cooking water etc to somehow owning power generation companies. wee bit of a stretch.

funny how for a died in the wool statist you suddenly now care so much about personal property rights.

trout

Mighty River Power has been granted water rights for 30 years. Many, many private organizations have been granted water rights. So what is the problem? Maoris, through Iwi involvement in consents, have a say in the granting of water rights. If a sector of Maori want to clip the ticket then that can be negotiated if and when the Govt. levies take off. At present charges for water are for treatment and reticulation rather than for the water itself. It is a stretch though for Maori to make a claim on the uptake of water that disappears in the Alps and is sucked up by pump from the depths of the Canterbury plains.

Hamnida, when the government sells an asset(part of a business), it ends up with an asset(cash). It has simply turned one class of asset into another. The same goes for any buyers. The same principle applies when you buy a car, home etc.

Nookin

“You neolibs are not too bright. The government is trying to sell you something you already own. ”

If I already own it, why can’t I
1. see my dividend cheque
2. spend my dividend according to my priorities
3. vote for the directors
4. turn up to an AGM
5. approve, or otherwise, any major transactions
6. tell my bank manager to get off my back because I own a power company
7. put my share on Trademe
8. buy someone else’s share on Trademe?

Yvette

CharlieBrown

The government has punched itself in the nuts by the way it has handled the SOE partial sales. If he had just taken the approach of giving shares to every voter then all the arguments around “selling OUR assets” would be mute, as it would allow people to put their money where their mouth is.

It is also realising that going into coalition with and appeasing useless racist, bludging fucks was never a good idea.

Just remember we live on a series of islands. You can pay $2000 for something you already own and put up with more expensive power bills, but that doesn’t mean people in the next suburb can.

I remember Max Bradford telling New Zealanders that privatisation of the power industry would lead to cheaper power prices. A typical neolib, he believed the private sector was magically more efficient than the private sector. End result, power prices went up 400% in the 1990s. Good one Max, really smart thinking.

So called New Zealanders who should be put on trial for treason: Bradford; Birch; Prebble; Douglas; Richardson; and Bolger.

Reid

I must admit you neolibs are very good at spin and PR:

So when morons like Hamnida talk about neolibs, this is what he means. But isn’t it fucking mental. Clearly the lefties have totally forgotten much of the raping and pillaging they are wringing their hands over occurred when the lefties were in power, such as Blair in the UK and Hulun over here and Obama with his bailouts a few years ago. Or doesn’t that count? Or didn’t they do any raping and pillaging? Or even if they did, it doesn’t count because they were lefties and they meant well? Perhaps Hamnida can explain which option it is? Either way, who gives a shit. Don’t you just love how fucking self-righteous the supercilious little pricks are. The stupid little fucks really truly apparently believe their fucking politicians are just as white as snow over this whole fucking mess and the entire blame for everything can be sheeted home once and for all to the selfish conservatives. Fuck lefties are M-E-N-T-A-L.

“I still can’t believe people voted for a junk bond dealer during an economic crisis.”

Now we get to the nub of Hamnida. He’s a Mallard, a Curran, a Labourite who still hasn’t accepted Hulun is long gone even 4 years after the event. “How could the majority of NZers have been so stupid not to have voted the way I think they should have.”

Get over it chump, if you don’t like it all you have to do is become Prime Minister.

wiseowl

The Government have already backed themselves into a corner.
What is so serious is the damage that is being done while they keep going down the current path.

They have elevated the minority to a point where they believe they can dictate (and virtually are) and this is disenfranchising all New Zealanders who should not be in this position at all.

No one owns water.
All of us should have the same rights to apply for the use of water.
We all have the opportunity to be elected to councils who make decisions about water. Co-governance is BS.It makes us unequal.
Further co-governance or rights given to some New Zealanders will deepen the divide.

“You can pay $2000 for something you already own and put up with more expensive power bills, but that doesn’t mean people in the next suburb can.”
1) Trying to say I already own something without the corollary that I also owe a share of $50+ Billion
2) Implying power will necessarily rise as a result of selling a minority of shares
3) Insinuating it is unfair to the poorer people (who might live in the next suburb) presumably because their power prices might rise, but ignoring that those people are already net tax beneficiaries who increase our borrowing rather than contribute to paying it down.

The reality is that those who can afford to buy shares will be contributing towards paying down our country’s debt. There’s no compelling evidence to suggest mixed ownership will be the cause of increased power prices, in fact much evidence suggests the opposite.

Reid

I think I am very objective when it comes to political analysis

On a blog, no-one gives a shit what your own assessment of yourself is, Hamnida. It’s in fact considered rude even to mention it. It makes people think you rate yourself and also makes people think you’re terribly insecure and you might wet yourself at any moment. Let your words speak for themselves.

Neolibs have bad policy that has failed for more than one generation, but are good at sucking people in through the use of language.

So just right now with the pwogwessive issue of gay marriage is a good example of how lefty scum use language all the time to their evil ends. Where the fuck do you get off accusing one side of doing something you guys do, all the fucking time? Do you think you’re the only one who understands propaganda Hamnida (you know, loudly accuse the enemy of that which you yourself are most guilty)? I mean FFS, it’s quite insulting, you obviously think no-one here would pick you up. When in reality, all of us immediately see straight through you.

Get some decent arguments together you useless little fuck or just fuck off. And drop the lefty “oh I’m so hurt you’re abusing me” you little wimp. Go to the Stranded and look what gets dished out to conservatives there if you want a comparison. And grow some balls you little girl, this isn’t play school.

Reid

You missed the whole point – rising inequality, which ever way it happens, is not good when you live on an island.

Ah. The old lefty meme. The way to run the economy is to squeeze the life out of the creatives. The people who make things happen. To stop them from operating lest they get ahead of the pack. The old USSR approach, eh? That’s what you lefties want, isn’t it. The old USSR command-control 5 year plan economy. Go on Hamnida, admit it. That’s the lefty wet dream isn’t it. Imagine how little inequality would exist, if only you had a USSR-style economy.

It is interesting that only right wing extremists still believe asset sales (sorry, ‘mixed ownership’) is a good idea.

Once again your lefty propaganda skills come shining through. “right wing extremists… The word just thrown in as if it’s just an offhand turn of phrase. Do us a favour Hamnida, use it on your naive lefty forums if you must, because you fools certainly would get sucked in by it, but recognise we sophisticated conservatives do notice it, and yawn, we don’t care, because we recognise it for what it is, and we ignore it. So don’t even bother, you’re just wasting your time, and have some respect, recognise where you’re posting, FFS.

BTW, I’m a conservative and I’m not especially enamoured with asset sales, esp not these ones. I don’t really care, either way. But I also recognise that if you asked the people who oppose them what the arguments for and against were, 90% of them wouldn’t be able to tell you even one economic argument. All they’d do is bleat on some emotive crap. And you know that’s true.

I also agree about Bradford. He should be one politician who shouldn’t get a pension because he doesn’t deserve one. (Neither should Cullen or Hulun either, BTW. All those people did things in office that were so incredibly execrable and incompetent they should all be disqualified from drawing one cent of taxpayer money, in fact, the latter two were so bad, they should be in prison.)

Henry64

Haminda @ 5:09pm said “The government is trying to sell you something you already own.”

Really?

When did you buy shares in the SOEs? Which SOEs? How many shares do you own? How much did you buy them for and how much are they worth now? What proof do you have that you actually own shares in the SOEs?

And you repeat a whole fallacy. The fact is that the distribution of wealth is broader now than at any time in human history. Go back 100, 500, 1000 years and the further you go, the more concentrated was the wealth and the power.

Elaycee

Scott1

that is straightforward to explain

The inequality measured by money is constantly growing, the inequality measured by stuff is constantly shrinking.

So now a fairly poor NZder on a benefit can afford to wear reasonably decent clothes (maybe second hand even) and eat enough food to be healthy. Meanwhile the richest people are able to leverage the work of many thousands of people (with their own effort) to earn thousands of times more than those people – which would have been impossible in the past.

So as you go back in time a leader who effectively owned 10 times as much as the rest of the people in his area might mean he was the only guy in town who could eat properly, have proper shelter and have proper clothes buit it would be unlikely that he could have millions of times their wealth. Now some guy might have 50 billion or so dollars and yet not really have a different lifestyle from a guy with only 500 million (100 times less).

ie at the top end while they might be able to buy a cruise liner or somthing – these things don’t really matter nearly as much as the things one buys with their first few dollars.

Paulus

I have just restructered my Bank Term deposits to enable me to have sufficient funds ready to buy a share in all the SOE shares available.
I understand from friends that they are doing similar.
Bring it on.

UpandComer

Equating criticism of the Maori Council for playing partisan makes you a racist?

Then your criticism of Israel makes you an anti-semite, and a racist.

Also, power prices rose by not far off 100% under Labour, and have plateaued since. Actually, power prices will probably drop soon.

And no, everyone doesn’t own them already, the govt does. Labour and their decade of deficits spending have proven we can’t trust the govt with these assets – I don’t want my power bills paying for an army of useless analysts or 1970’s industrial labour policy.

Bonus shares wouldn’t be required if tossers like you weren’t worried about people who have earned their money using it as they please.

Also, I don’t know what tossers are calling mandates these days, but winning an election with the highest votes ever under MMP when the sole platform of the opposition is ‘no asset sales’ is a mandate.

And power prices will rise on mondays, even months, on change of government and on full moons. That’s correlation. If you want causation then look at that little matter of supply vs demand. In my view.